A merger between Saipem and Subsea 7 “would create a truly global oilfield service giant with over $12.4 billion in revenue,” said Audun Martinsen, head of oilfield service research at Rystad Energy.
Commenting the unconfirmed reports that the Italian and British-Luxembourgish oil and gas contractors may join forces, the think tank’s expert notes: “The combined entity would have the world’s largest fleet of subsea installation vessels and be the largest provider of SURF services, with a market share of close to 40%. In addition, Saipem has a diverse portfolio including large-diameter pipeline installation vessels, offshore drilling rigs, one of the world’s biggest crane vessels and numerous offshore fabrication yards.”
Such a merger would create the fourth-largest oilfield service company, after Schlumberger, Halliburton and Baker Hughes.
Rystad Energy, independent energy research and consulting firm headquartered in Norway with offices across the globe, sees this move as a direct response to recent developments on several fronts in the oilfield service industry.
By combining with Saipem, Subsea 7 would also get exposure to onshore engineering and construction, where Saipem has a solid track record in the petrochemical and liquefied natural gas industries, thus reducing dependence on upstream oil and gas activities.